CORN HIGHLIGHTS:

• Corn futures rallied off session lows to finish higher, supported by technical buying after prices tested and held key support levels. September corn gained 2 cents to 399 ¾, and December futures added 1 ¾ cent to 419 ¾.
• The U.S. drought monitor maps released on Thursday morning show an increase of dry conditions in the eastern Corn Belt. As of August 2, 9% of corn acres were in some form of drought, up 4% from last week. The dry conditions will likely limit the top side in corn production for the second straight year.
• Weekly ethanol production increased last week to 316 million gallons/day for the week ending August 29. A total of 107 mb of corn was used last week for ethanol production. This is very close to the pace needed to reach the USDA target for the marketing year, which ended on August 31.
• USDA will release weekly export sales on Friday morning. Expectations are for 2025-26 sales to range from 900,000-2.2 MMT. Current exports sales are nearly double last year and the second-best start in sales in the last 25 years for this time frame.
• Below normal temperatures are forecasted for the northern Corn Belt this weekend as overnight low temperature could push toward the freezing mark. If some frost was to occur, it could limit the final development of the corn and soybean crops in those areas.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher, surging back from earlier morning lows along with the rest of the grain complex. November soybeans gained 1-1/2 cents to $10.33 while March gained 1-1/4 to $10.67. October soybean meal gained $2.50 to $280.10 and October soybean oil gained 0.07 cents to 51.51 cents.
• Yesterday, Allendale projected that the national soybean yield would come in near 53.28 bpa with production at 4.27 bb. This would be slightly below the USDA estimate which will likely be updated in next week’s WASDE report. The USDA’s last yield projection was 53.58 bpa.
• Chinese soybean demand stays absent from the U.S. market, limiting prices. China has been an active buyer of both old and new crop soybeans out of South America this week. It was reported that China logged purchases on soybeans from Argentina yesterday.
• U.S. soybean crushings were seen at 204.8 million bushels in July which was up 5.9% from the same period last year and above June crushings of 196.9 mb. This strong domestic demand should be supportive relative to slow export demand.

WHEAT HIGHLIGHTS:

• Wheat futures ended lower across all three classes, unable to join the recovery seen in corn and soybeans. The absence of fresh news and a firmer U.S. dollar pressured prices. December Chicago closed 2-1/2 cents lower at 519-1/2, while December Kansas City lost 4 cents and December MIAX lost 2-3/4 cents to 506-1/4 and 570-1/4, respectively.
• Ukraine, which is getting ready to plant winter wheat, has seen good rainfall through late August in the central, southern, and eastern growing regions. This has helped to create adequate soil moisture and agreeable conditions to get the crop off to a good start.
• Alongside a recent increase to the Australian wheat crop production estimate from ABARE, LSEG commodities research has also upped their projection. Their forecast for the 25/26 crop was raised 7.3% to 32.3 mmt. Widespread rains in July and August were cited as the reason for the increase.
• A memorandum of understanding was signed between Israel and Moldova in regard to joint wheat cultivation. Reportedly, Israel will provide seed and knowledge, while Moldova will provide land, water, and labor. This is said to be part of Israel’s strategy to increase food security.
• According to their ministry of agriculture, in Saskatchewan (Canada), the spring wheat harvest is 14% done as of the beginning of this month. Total production is anticipated to be above the five-year average, despite expectations for slightly lower yields.

DAIRY HIGHLIGHTS:

• The Class III market faced moderate to sharp losses today with the October contract dropping 24 cents to $17.03.
• Spot cheese had a rough day with a 3.50 cent drop in blocks and a 3.75 cent drop in barrels to move to $1.73625/lb. Spot whey was down a quarter cent.
• Class IV milk was unchanged or higher in the nearby contracts with the October Class IV moving to $17.03. Some contracts in 2026 settled with losses.
• Spot butter settled 0.25 cents higher today at $2.0150/lb, entering Friday down 3 cents on the week and near 4-year lows. Spot powder fell 0.75 cents on Thursday.

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Author

Brandon Doherty